Procter & Gamble reported net sales increased 5% for the January-to-March quarter to $20.2 billion driven by 5% volume growth, as well as favorable pricing and foreign exchange, partially offset by geographic and product mix. Organic sales, which exclude the impacts of acquisitions, divestitures, and foreign exchange, grew 4%.
"The growth fundamentals of our business are strong," said chairman of the board, president and CEO Bob McDonald. "We delivered broad-based volume, sales, and market share growth, and grew EPS in a very difficult operating environment. We increased our dividend for the 55th consecutive year, by 9%. We continue to advance our Purpose-inspired growth strategy of improving the lives of more consumers, in more parts of the world, more completely."
Baby Care and Family Care net sales increased 5% to $4 billion for the quarter on 7% volume growth. Organic sales grew 5%. Price increases improved net sales by 1%. Mix reduced net sales by 2% driven by disproportionate growth of mid-tier and value product lines, larger package sizes and developing regions, all of which have lower than segment average selling prices. Unfavorable foreign exchange reduced net sales by 1%. Volume in developing regions was up double digits and volume in developed regions increased low single digits. Volume in Baby Care grew high single digits due to initiative activity, distribution expansion and market growth in Europe and developing regions, partially offset by the impact of the North American launch of Pampers Dry Max in the base period. Volume in Family Care was up mid-single digits behind the continued success of prior-period initiative launches across Charmin and Bounty and double-digit growth of Charmin Basic in North America.